FxWirePro Call Review: Brent inches higher to challenge bears around $80 area

In July, we called on our readers to long Brent crude at the then current rate of $74.3 per barrel, with a target of $95 per barrel citing Middle East tensions, https://www.econotimes.com/FxWirePro-Long-Brent-targeting-95-per-barrel-as-geopolitical-tensions-intensify-in-Middle-East-1409049

However, as some of the key bearish fundamentals (Middle East truce, weaker demand from China and India due to respective slowdown in the economies, higher production in Saudi Arabia, Russia, Iraq, and UAE) clouded the outlook, in our last review, we urged readers to book the long positions at -$3.3 per barrel loss and wait for the opportune moment to re-enter positions.

Our latest calculations suggest that despite the sharp rise in prices over the past two weeks or so, sellers remain quite active in Brent. The commitment of traders position also suggests that same. Since April, long positions in the light sweet crude oil traded in NYMEX has declined by almost 200,000 contracts.

The Brent crude is currently trading at $77.7 area, ad inching higher to test the $80 per barrel area. Unless this key resistance area is decisively broken, we expect sellers to remain active in trying to push Brent to as low as $60 per barrel area.